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The Major Criticism of Real Business Cycle Models Is

Question 87

Multiple Choice

The major criticism of real business cycle models is


A) negative technology shocks are uncommon and can't explain all business cycle fluctuations.
B) positive technology shocks actually push real GDP above the economy's potential GDP.
C) negative technology shocks actually push real GDP below the economy's potential GDP
D) this model relies too heavily on monetary explanations for fluctuations in real GDP.

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